How many people does Albert need to break even?………………..

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Question:

How many people does Albert need to break even?

(not lose money on his venture)

Solve 15 n – 225 = 0 => n=15

more than 15, he makes money

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Albert’s Charter Bus Venture (example)

Where is the Loss Region?

Where is the Profit Region?

Where is the Breakeven point?

A new machine comes with 100 free service hours over the first year. Additional time costs $75 per hour. What are the average and marginal costs per hour for the following quantities?

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Exercise 2.3

a) 75 hours

A new machine comes with 100 free service hours over the first year. Additional time costs $75 per hour. What are the average and marginal costs per hour for the following quantities?